Reunion Gold Corporation

Reunion Gold Corporation

April 20, 2011 08:54 ET

Reunion Gold Corporation Announces Closing of C$40,250,000 Bought Deal Financing

LONGUEUIL, QUEBEC--(Marketwire - April 20, 2011) -

Not for distribution to U.S. news wire services or dissemination in the United States

Reunion Gold Corporation (TSX VENTURE:RGD) ("Reunion" or the "Company") is pleased to announce that it has closed the previously-announced bought deal financing (see news release of March 29, 2011) for gross proceeds of $40,250,000. A total of 23,000,000 common shares of the Company ("Common Shares") were sold at $1.75 per Common Share (the "Offering"), including 3,000,000 Common Shares sold pursuant to the exercise in full of the option granted to the underwriters to purchase up to an additional 15% of the number of Common Shares purchased pursuant to the Offering. The underwriting syndicate was led by BMO Capital Markets and Dundee Securities Ltd. and included GMP Securities L.P., Cormark Securities Inc. and Primary Capital Inc. (collectively, the "Underwriters").

As consideration for the Underwriters' services related to the Offering, they received at closing a total cash commission of $2,415,000 and non-transferable broker warrants entitling the Underwriters to purchase up to 690,000 Common Shares at a price of $1.75 per Common Share until October 20, 2012.

The net proceeds of the offering will be used for the continued advancement of the Company's Matthews Ridge property, including resource definition drilling, metallurgical studies, technical studies including a pre-feasibility study, and for general corporate purposes.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of securities in any State in which such offer, solicitation or sale would be unlawful. The Common Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

All securities issued in connection with the Offering including the broker warrants are subject to a hold period that expires August 21, 2011 and may not be traded except as permitted under applicable securities legislation and the policies of the TSXV.

Forward-Looking Information

The information in this press release has been prepared as at April 20, 2011. Certain statements contained in this press release constitute forward looking information under the provisions of Canadian provincial securities laws. Such statements include statements regarding the Company's use of the net proceeds from the Offering, as well as its plans for advancement of the Matthews Ridge property. Although the Company believes, in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate, that the expectations reflected in this forward-looking information are reasonable, the Company can give no assurance that they will prove to be correct. Forward-looking information involves known and unknown risks, uncertainties, assumptions and other factors that may cause actual results or events to differ materially from those anticipated in forward-looking information. The Company does not intend, and does not assume any obligation, to update this forward-looking information, except as required by law. Accordingly, readers are advised not to place undue reliance on forward-looking information.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

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